What to expect from today's budget as Labour promise to build a 'stronger future'
Chancellor Rachel Reeves will deliver her budget today against a background of rising costs and pressure on the Prime Minister
Last updated 26th Nov 2025
Chancellor Rachel Reeves will deliver the Budget later today, but what will be in it?
Labour are promising measures aimed at addressing the cost of living, reducing NHS waiting lists, and investing in the country’s future, but today's budget could also include tax increases in order to fill a black hole in the public finances.
Several headline-grabbing policies have been announced ahead of today's budget: rail fares have been frozen, prescription costs are staying under £10 and the National Minimum Wage and the National Living Wage are both increasing.
What else might be in today's budget?
Salary sacrifice... partly sacrificed. There have been reports of a potential cap for people sacrificing their salary for things like pension schemes. It's been reported a cap could be £2,000 a year, although some have suggested that restrictions could go further.
Help to Save... saved. The Chancellor is expected to announce that the Help to Save scheme, which was set to end in 2027, will be made permanent. Help to Save is a type of savings account which allows certain people receiving universal credit to get a bonus to boost their pot.
Tax for electric vehicles. The Chancellor is thought to be considering a 3p per mile tax for EVs as she seeks to protect revenues as people shift away from petrol and diesel – and the fuel duty that brings in to the Exchequer.
Two-child benefit cap. As pressure has piled up, Ms Reeves is expected to scrap the limit that restricts child tax credit and universal credit to the first two children in most households.
Cash ISA limit reduced. The annual cash Isa limit could be reduced to £12,000.
Tax hike on high-value homes. A new levy could be applied to some of the most valuable homes in what has been billed by some as a “mansion tax”.
Higher property tax for large commercial properties. Supermarkets could face a jump in business rates payments.
The Government is thought to be planning on introducing a new business rates “surtax”, which will mean many larger commercial properties will face a higher rate of the property tax in order to help fund a permanent discount for smaller retailer, leisure and hospitality firms.
Crackdown on benefits fraud. Ms Reeves will seek to raise £1.2 billion by March 2031 by extending a crackdown on fraudulent and mistaken universal credit payments via the targeted case review scheme.
"A fairer, stronger, and more secure Britain."
Speaking ahead of the speech today , Chancellor Rachel Reeves said:
“Today I will take the fair and necessary choices to deliver on our promise of change.
“I will not return Britain back to austerity, nor will I lose control of public spending with reckless borrowing.
“I will take action to help families with the cost of living…cut hospital waiting lists…cut the national debt.
“And I will push ahead with the biggest drive for growth in a generation.
“Investment in roads, rail and energy. Investment in housing, security and defence. Investment in education, skills and training.
“So together, we can build a fairer, stronger, and more secure Britain.”
Farmers are set to take to the streets of Westminster on Budget day in a protest about inheritance tax, but have been banned by the Metropolitan Police from bringing their tractors.
The budget announcement will be around 12.30pm today, shortly after Prime Minister's Questions.